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Thursday December 19, 2019

// December 4th, 2019 // Daily News

Next Year will be hard on the housing market, especially in these big cities
PUBLISHED WED, DEC 4 20196:38 AM ESTUPDATED 19 MIN AGO
Diana Olick

Sales of existing homes will fall 1.8% from 2019, according to the forecast.
Home prices will flatten nationally, increasing just 0.8% annually, but prices will fall in a quarter of the 100 largest metropolitan markets, including Chicago, Dallas, Las Vegas, Miami, St. Louis, Detroit and San Francisco.
As demand heats up in the spring, driven by the growing number of millennials entering the market, the supply of homes for sale could hit its lowest in history.
Home sales will drop, the housing shortage could become the worst in U.S. history, and home values will shrink in some cities. That’s the 2020 forecast from realtor.com, which holds one of the largest databases of housing statistics available.
Sales of existing homes will fall 1.8% from 2019, according to the forecast. Home prices will flatten nationally, increasing just 0.8% annually, but prices will fall in a quarter of the 100 largest metropolitan markets, including Chicago, Dallas, Las Vegas, Miami, St. Louis, Detroit and San Francisco.
It is a seemingly contrary assessment, given the current strength of the economy and of homebuyer demand, but the dynamics of this housing market are unlike any other — the result of a housing crash unlike any other.
“Real estate fundamentals remain entangled in a lattice of continuing demand, tight supply and disciplined financial underwriting,” said George Ratiu, senior economist at realtor.com. “Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford but rather what they can’t find.”
It’s all about supply. The inventory of homes for sale has been falling steadily for several years and is at its lowest on the lowest end of the market. That caused prices to overheat, weakening affordability. The 2020 forecast offers no relief, in fact just the opposite. As demand heats up in the spring, driven by the growing number of millennials entering the market, the supply of homes for sale could hit its lowest in history. The situation will only be exacerbated by the baby boom generation, which, according to the forecast, will have little incentive to sell, given weaker home prices.
“While millennials share many similar traits with prior generations, they have been marked by a delay in major life milestones, including starting a family and purchasing a home,” said Ratiu. “Millennials not only purchased a higher-priced first home but faced with growing families, many of them skipped the traditional starter home and moved straight to a mid-priced, trade-up home.”

Today’s Inspiration

DECEMBER 04, 2019
Every Day Is Thanksgiving
Adapted from the resource The Greatest Gift Study – by Joyce Meyer

Thanksgiving is not just a day to eat turkey and pumpkin pie. It was a day originally set aside to remember and give thanks to God for what He had done in protecting the first men and women who came to America, fleeing religious persecution in Europe. It was a type of harvest celebration like the one that the Jews celebrated – a day to give thanks for the crops they were able to harvest.

In addition to thanking God as we go through life, it is also a good idea to set aside special times of gratitude and giving thanks.

Sometimes our family sits together and remembers where God has brought us from, and we thank Him for all He has done. Dave and I talk about our life when our children were all young and we lived in a tiny three-room apartment and had to cash in soda pop bottles to make it through until payday.

I am sure you can recall times similar to those we had, and remembering them makes us thankful for how God brought us through them, and for all the progress we have made by His goodness.

Prayer Starter: Father, help me to realize that Thanksgiving is more than just a day on the calendar. I am grateful for all You have done in my life, not just today, but every day of the year.